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DaimlerChrysler KM Strategy

K6201 - KM Foundations-Group 3August 2011

traditional market

Why Chrysler KM?

new markets

need stretch!

1990s

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traditional market

Why Chrysler KM?

new markets

•different client•different product•need scale•need speed

1990s

Focus 1

Focus 2

dilemma

•traditional clients•need preserve standard•increased competition

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Why Chrysler KM?

pressure

But in 1970-80s

•plant closures•staff lay-offs•budget cuts•shrinking engineering

Techincal

Reports

Institute of

Engineering

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Why Chrysler KM? •need go for new

markets•with weakened engineering•under increasing competition

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Why Daimler KM?

1990s

•Stagnating demand for luxury cars•5.7bln loss•Lexus and Co push into the luxury market•Non-traditional distribution and sales -Internet

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Why Daimler KM?

1990s

Failed diversification attempt + huge losses

A-class ( Swatchmobile)

M-class SUV

aerospace

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Daimler KM initiativeNo formal

structure

Learning champions failureLearning champions did not know what type of data, info, knowledge was useful to practitioners

Established the Daimler Corporate University

Germany's tradition of vocational training provided provided a built-in structure for the exchange of tacit knowledge from one generation to the next

Instruct top executives in strategic thinking and other executive skills

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Everybody else is doing it so why can’t we?

1998

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KM at Chrysler

1. How to map corporate knowledge and make it explicit and accessible?

2. How to make knowledge buckets talk to each other?

3. How to capture the knowledge being produced?

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KM at Chrysler

Design Div.

Sales Div.

Procurement Div.

Manufacturing Div.

Engineering Div.

heavy teams

platforms

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KM at Chrysler: 3 Steps. 1 – Restructure & Make Knowledge Bucketsplatforms Small

carsLarge cars Minivans Jeeps Trucks

Adv.Veh.Engineering

Body

Chassis

Electrical/Electronic

Interior

Powertrain

Scientific Labs

Vehicle Development

Program Management

Energy Management

Thermal

Know

ledg

e bu

cket

1

Know

ledg

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cket

2

Know

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cket

3

Know

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e bu

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4

Know

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5

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KM at Chrysler: 3 Steps. 1 – Restructure & Make Knowledge Buckets

Knowledge bucket

Product DBs

CAD/CAMManucafturing,Procurement,Supply data

Vehicle Test data

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KM at Chrysler: 3 Steps. 2 – Tech Clubs

platforms Small cars

Large cars

Minivans Jeeps Trucks

Adv.Veh.Engineering Tech Club 1

Body Tech Club 2

Chassis Tech Club 3

Electrical/Electronic Tech Club 4

Interior Tech Club 5

Powertrain Tech Club 6

Scientific Labs Tech Club 7

Vehicle Development Tech Club 8

Program Management Tech Club 9

Energy Management Tech Club 10

Thermal Tech Club 11

Know

ledg

e bu

cket

1

Know

ledg

e bu

cket

2

Know

ledg

e bu

cket

3

Know

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4

Know

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5

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KM at Chrysler: 3 Steps. 3 – Engineering Book of Knowledge (EBOK)

Tech Club1

Tech Club5

Tech Club2

Tech Club3

Tech Club4

Tech Club n

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KM at Chrysler: 3 Steps.

- Skill in discovering niche markets

- Skill in developing products rapidly

- Innovations ( minivan, SUV)

3 Steps

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Daimler Chrysler mergerWho brings what?

North American market

Flexibility & Innovation

3D modeling

Upscale segment of North American, European and Asian markets

High-class engineering skills

Crash simulation

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Daimler Chrysler mergerKnowledge merging - PMI

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Daimler Chrysler – KM initiatives1) KM initiatives are driven by market situation, generally: a disaster makes think faster

2) KM initiatives require understanding & support on top level3) KM initiatives require combination of 3 aspects: a) specific human interactions,

b) organizational and conceptual “places” to work on knowledge assets

-c)IT tools to connect data, info, knowledge and people

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Daimler Chrysler – KM initiatives

KM initiatives require combination of 3 aspects

KOL

Matrix organization

Special

Interest

groups EBOK

TechClubKnowledgeBuckets & platforms

Lotu

s Not

es

Issue

Resolution

Teams

PMI program

CoP

Knowledgedomains

Wel-

Kom

Booz-Allen Chrysler Daimler Chrysler Daimler

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